Hims & Hers, a telehealth platform aimed at millennials, announced on Monday that it has appointed Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz brings over 25 years of experience from Novo Nordisk, where he held various positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed excitement about joining Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. This is the first company I have seen that is leveraging today’s modern tools to truly break down barriers and change the status quo of how people access the health solutions they need to live their fullest lives. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers saw its stock rise by 3% in morning trading, with shares up 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications, Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is selling a month’s supply of this weight loss medication for $199, significantly cheaper than Ozempic’s list price of nearly $1,000 and Wegovy’s nearly $1,349 price.
Due to the limited availability of these expensive branded drugs, multiple telehealth platforms are capitalizing on a provision within the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to fulfill the specific needs of an individual patient.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that simply replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not consider drugs that are in shortage to be commercially available.
In a statement to Bloomberg on Monday, Schultz indicated that the company has a “long future” in selling compounded semaglutide. When questioned about whether pharmacies would be able to continue making compounded semaglutide after shortages cease, Schultz expressed confidence, stating that there will still be instances where patients require individualized prescriptions.